Approved Code No. 223-Arnendrnent No. 1 Registry No. 1399-17 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY 

DISTRIBUTING TRADE 

AS APPROVED ON JUNE 23, 1934 

WE DO OUR PA.i:rf 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 223-Amendment o. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY DISTRIBUTING 

TRADE 

As Approved on June 23, 1934 

ORDER 

APPROVING AMENDMENTS TO THE CoDE OF FAIR CoMPETITIOX FOR THE 

CONSTRUCTION MACHINERY Dr TRIBUTI :ra TRADE 

An application having been duly made pur uant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of amendments 

to a Code of Fair Competition for the Construction Machinery Distributing Trade, and hearings having been duly held thereon and 

the annexed report on said amendments, containing findings with 

respect thereto, having been made and directed to the President: 

row, THEREFORE, on behalf of the Pre ident of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pur uant to authority vested in me by Executive Order of the President, including Executive Order o. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate, by reference, said annexed report and do find that aid amendments and the Code as contituted after being amended comply in all re pects with the pertinent 

provisions and will promote the policy and purposes of said Title 

of said Act, and do hereby order that said amendments be and they 

are hereby approved, and that the previous approval of _said Code is 

hereby modified to include an approval of said Code in its entirety 

as amended, such approval and such amendments to take effect fifteen 

days from the date hereof, unless good cause to the contrary is 

shown to the Administrator before that time and the Administrator 

issues a ub equent order to that effect. · 

HUGH 8. JOHNSON, 

Ad11iin istrator for Industrial Recovery. 

Approval recommended: 

BARTO ,v. MURRAY, 

Acting Division Ad11iinist1'ator. 

w .ASHINGTON, D.C., 

June 23, 1934. 

69694°-657-142-34 (1) 
REPORT TO THE PRESIDE~T 

The PRESIDEJ'il T, 

The 1Yhite House. 

Srn: Thi i a report on the amendment to the Code of Fair Competition for the Construction :Machinery Distributing Trade, as revised after a Public Hearing conducted in Washington on i1ay 11 

193-:1: in accordance with Article X, Section 1 of said Code a appro"\""ed on January 23 1934. The amendment which clarify the definition of the Trade and 

pertain to procedure of the ode Authority will improve and 

simplify the opera ti n of this Code. 

FI TDINGS 

The Deputy Administrator in his final report to me on aid amendmen to aid Code having found as herein set forth and on the 

basi of all the proceedings in thi matter: 

I find that : 

(a) The amendment to aid ode and the Code a amended are 

well de igned to promote the policies and purpo e of Title I of 

the K ational Industrial Recovery Act, including the r emo-val of 

ob tru tion to the fre flow of int r tate and foreign commerce 

which tend to dimini h the amount thereof and will provide f r 

the o-eneral welfare by promotina the organization of indu try for 

the purpo e f coop rative ac ion among trade group , b indu ing 

and maintainino· united action of labor and nianaaement under 

adequate governm ntal sanction and supervi ion, by eliminatin 0 

unfair competiti, practice b:5 promoting the fulle t po ibl utilization of the pre nt producti-ve apacity of indu trie by a,oidin · 

undue re triction of production ( except a may be temp raril requjre 1), b 1 increa ing the con umption of indu trial and agri ultnral pro luct through increa ing pur ha in<Y power by reducinoand reli Ying unemployment b impro ing tandards of labor, and 

b oth n,i ·(; r habilitating in lustr . 

(b) .-. aid Trade normally employ not more than 50 00 employee 

an 1 i. not cla ifie l by me a a major Tra l . 

( ) Th od a am nde 1 omplie in all r e pect with the I rtineut provi ·i n of aicl Titl f aid A t. includin · with ut limitation '11b. c ·t' on (a) f e tion ub e tion (a) of tion 7 and 

ub. diem (b) f tion 10 th r of. 

( d) 'I h o l A nth ri ', duly auth riz 1 to r epre. nt th Tra 1 , 

ha appli c1 f or an 1 a .. nt t th am n 1m nt . 

) Th am n lment an l th 1 a an n l d ar n t 1 

an 1 ,Yill uo p 'rmit monopoli r mon 1 li. ti pra ti 

(f) ' h , n 'IH1m nt. · and th c1 a nm ncled ar n t le icm 1 

to a1Hl , ill not liminat or 01 J r mall ntcrpri and will not 

p rate to Ji · -riminat agajn t th m. 

(2) 
3 

(g) Those engaged in other steps of the economic proce shave not 

been deprived of the right to be heard prior to approval of said 

amendments. · 

For these reasons, these amendments have been approved by me. 

subject to a fifteen day tay and opportunity to be heard by all 

affected person . Re pectfully, 

J UXE 23 1 1934. 

H -coH S. J onNsoN, 

Aclniinistrator. • 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE CONSTRUCTION MACHINERY DISTRIBUTING 

TRADE 

• PURPOSE 

Pursuant to Article X, Section 2, of the Code of Fair Competition 

for the Construction Machinery Distributing Trade, duly approved 

by the President on January 23, 1934, and further to effectuate the 

policies of Title I of the .1' ational Industrial Recovery Act, the following amendments are established as a part of said Code of Fair 

Competition and shall be binding upon every member of the Construction :Machinery Distribu_ting Trade. 

ARTICLE II-DEFINITIONS 

The first paragraph is hereby amended to read as follows: 

"The term 'Construction JYiachinery' or 'Machinery', as used 

herein, shall include any n°w and/ or used machinery, equipment, or 

attachments used in the construction or maintenance of any project, 

but not becoming a permanent part of the structure or of its 

operation." 

The econ cl paragraph is hereby amended to read as follows: 

"The term 'Con truction :Machinery Distributor', or 'Distributor', a u~ecl herein, hall include any person other than a manufacturer ( xcept manufacturers who as ent for any part of the items 

included in thi Trade), but without limitation, who warehouses, 

sells, rent ·, or distributes Construction Machinery as hereinabove 

defined." 

ARTICLE VI-Am,nNISTRATION 

Section 3 : Sub-section (b) is hereby deleted. 

ection 2: There is hereby added at the end of Section 2, a new 

se tion numb reel Sec. 2A, to read as follows: 

M mbers of th Trade who warehouse, sell or distribute Used 

1iachinery me y, if they le ire, elect one additional memb r of the , cle Authority in any fair manner approved by the Adn ini trator." 

There is ] er('hy a l<led at the nd of Article VI, a new Section, to 

b numbered 9, to r acl as follow : 

' EC. 9, Asscssm .. nts.-A. It being foun 1 n ary in or ler to 

up1 rt th administration of his Code ancl to maintain the tandanls of fair competition tabli he 1 h r uncl r and to fie tuate the 

poli y of the -t, the Cod uthority j authoriz cl, ubj t to the 

a I proYal of th A lmini trator : '· (a) To in ·nr ·u h rrasonabl obligati ns a ar n e ary and 

proper for th for croing purpo · s an l to me t u h obligations out of 

(4) 
5 

funds which may be rai ed as hereinafter provided and which ·hall 

be held in trust for the purpo es of the Code; 

"(b) To ubmit to the Administrator for his approval, ubj ct to 

such notice and opportunity to be heard as he may deem ne e · ary 

( 1) an itemize l budget of its e timated €xpense for the foreg in er 

purpo e , and (2) an equitable ba is ur on which the fund nec0: ary 

to support such budget hall be contributed by members of the Trade; 

"(c) After uch budget and bas.:.s of contribution have be n approved by the Admini trator to letermine an l obtain equitable ontribution [.lS above set forth by all members of the Trade, and to that 

end, if neces ary, to in titute legal proceeding therefor in it own 

name. 

' B. Each member of the Trade hall pay to the extent of the 

Yolume of h~ or it bu iness under this Code, his or it equitable contribution to the e:xpen e of the maintenance of the Code Authority, 

letermined a hereinabove provided, and subject to rules and regulations pertain:ng thereto, issued by the Administrator. Only members of the Trade complying with the Code and contributing to the 

expenses of its administration as herein.above provided shall be entitled to part:cipate in the selection of members of the Code Authority or to r eceiYe the benefits of any of its voluntary activities or to 

make use of any emblem or insignia of the .r ational Recovery Administration. "C. The Code Authority shall neither incur nor pay any obligation 

in excess of the amount thereof as estimated in its approved budget, 

except upon approval of the Administrator; and no subsequent 

budget shall contain any deficiency item for expenditure in exce of 

prior budget estimates except those which the Administrator shall 

have so approved." 

ARTICLE VII-. TRADE PRACTICES 

Section 1 is hereby amended to r ead as f allows : 

"SEc. 1. Inducing or attempting to induce a breach of commercial 

contract to which a member of the Trade is a party." 

Section 2 is h ereby deleted and a new Section 2 is hereby added 

to read a f allows : 

" SEC. 2. R enting below list price.- o member of the Trade shall 

rent or offer t o r ent any machinery, attachments, or equipment at a 

price lower or on terms more favorable than those stated in his published price li t or price lists, with discount sheets, if any, filed in 

accordance with Article IX." 

Section 3 is hereby amended to read as follows : 

" SEO. 3. Paying or allowing secret r ebates, refunds, unearned di -

counts or credits, either in the f orm of money or otherwi e or ecretly 

extendinO' to certain customers special services or priYileges not extended to

0 

all customers of the same cla son like term or conditions." 

Section 4 is hereby amended to read as follows : 

"SEc. 4. Paying or agreeing to pay, directly or indirectly a 

commission or consideration of any kind, except to persons regularly 

employed in the distributor's organization or to regularly e tabli heel 

sub dealers ; provided, however, that nothing in this Section 4 shall 

be construed to prevent the allowance of discounts to cu tamers as 
6 

, 

prescribed 1n the distributor's published price lists and discount 

sheet." 

The proviso in Section 6 is hereby amended to read as fallows : 

"P1·ovided, however, That damaged, obsolete, noncurrent, and 

di tre s con truction machinery, attachn1ents or equipment may be 

sold at such prices as are nece ary to move the goods into buyers' 

hand , but as to new machiner only after filing with the Code 

Authority at least ten (10) day in advance of such sale a list showing the quantity and de cription of uch machinery." 

Section 12 is hereby amended to read as follows : 

SE . 12. Quoting cleli,ered prices on new machinery or in,oicing purchaser without adding, to the f.o.b. factory price, transportation and other haro-es and failincr to tate in quotation, where 

freight i to be pr pai l, that such prepaid freight will be charged 

as a eparate item and billed net cash." 

The following new s ctions are hereby added: 

'SEc. 18. Renting u eel machinery equipment, or attachments 

witli an 01 tion to purcha e, with full application of the rentals upon 

the purcha e price, except upon the following condition : 

" (a) Sale value shall be stated in the contract. 

' (b) Said option shall not be for a longer period than thirty ( 30) 

da from date of ieli,ery. 

'

1 ( c) The term f payment of the purcha e price, in the event of 

exerci e f the option hall conform to Section (2) of this Article 

VII. 

EC. 19. In the event of a ale of used machinery, equipment, or 

attachments during or at the expiration of a lea e period or any exten ion thereof other than a ale upon option as hereinbdore provided all wing as partial payment of the fair purcha e price, more 

than certain per ntages of the r ntals paid or accrued. uch perentage to b let rmined by the Code Authority for regional areas 

wi h the uppro-val of the Aclmini trator. 

' EC. 0. Ha,ing any rental arrancrement except a evidenced by 

igne l agr ement or 1 ase. 

'SEo ..... 1. Renting any ma hinery upon any agreement unle s it 

hall provi le in all ca es that the rental charcres shall tart from th 

date of lelivery from and continu to the date of r turn to, le or 

warehou e, ( ex e1 t that in the ca e of hipments by public carrie1: 

the r ntal period hall be from elate of bill-of-lading to date of billof-lading) a tual tran portation charcre to bB paid by le ee in all 

ca : EC. 22. elling an ' n1a ·hiner 1 un ler any l romi e r a reement 

to r pur ha the . ame. 

EC. 2· . R ntino· machiner, for an incl finit I eriod of tJme uch 

a.- the luration f a j b for a lump um or maximum rental whi h 

i · 1 .-s than the pri li t, or pri li t and dis unt heet , a filed in 

a· ordan with rti le .., -." 

.... \RTI LE I~r_p LICITY F RI E 

ction 1 is her b am n 1 1 to read n f >11 ~ . . 1. Each m mlJ r of tlw Trad ·hall w1thin thfrt~ (30) da 

a ftn th rff • · i T uat of thi · d file with th o l Auth rity 

c.:opi '. oi hi pric fo.,t., with l1i ·coun .-he t ·, if an ' ~h wing I ri-ces 
7 

for all new machinery, attachments, and equipment which ai 1 member sells. Each member of the Trade hall within thirt (30) days 

aft r the eff ctiYe date of thi amendment file with the d uthority a complet schedul of hi rental prices bas d upon unit of 

time. Each member f the Trade shall at all times file an l maintain 

wi h the ode uthority price lists, with discount sheet if any, 

h win; price of all new machinery attachment , and quipment 

and all rental chedule and shall not mak: any chang in aid 

price xcept b3 filing notice of such price changes as hereinafter 

provided." 

There is hereb added a new ectjon to be numbere l 4 and to real 

a :follow : 

E . 4. Li t and di c unt heets file l with the o 1e Authority 

hall b available for the inspection of all member of the Trade 

and all other intere ted partie and copie thereof shall be furni heel 

b th ode uthority to all who agree to pay their pro-rata 

hare of the co t of the actual additional expense of such enlarg d 

ir ulation." 

Section 4 i hereby amended by renumbering it so that it becomes 

Section 5. 

EFFECTIVE DATE 

The :foregoinb amendments hall become effective on the date of 

approval hereof. 

ApproYed Code No. 223-Amendment To. 1. 

R egi try No. 1390-17. 

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